Kiskinis Communications

New Law Expands Eligibility for Tax Credit Election

Labor Day weekend has traditionally been a popular time to purchase a new or used vehicle, with dealerships offering financing incentives, cash-back offers and discounts.

This year, Florida car buyers have another reason to pay attention when making their purchase. Legislation approved by Florida lawmakers in July expands the number of vehicles eligible to participate in the Florida Tax Credit Scholarship Program. HB 7031E increases the allowable net vehicle weight from 5,000 pounds to 8,000 pounds for qualifying vehicles.

The change means more Floridians purchasing or registering vehicles, including larger family SUVs, electric vehicles and certain vehicles commonly used for business purposes, can elect to redirect up to $105 of the state sales tax they already owe to Step Up For Students, a state-approved scholarship funding organization serving Florida students and families. There is no additional cost to the vehicle buyer or registrant.

For Floridians planning to take advantage of Labor Day vehicle promotions, preparation can help make the most of their purchase. Shoppers may want to research models and local inventory in advance, compare financing options from banks, credit unions and dealerships, and understand the value of a vehicle they plan to trade in.

But finding value in a vehicle purchase can extend beyond the final price.  When purchasing or registering an eligible vehicle in Florida, buyers can elect to redirect up to $105 of their required state sales tax to the Florida Tax Credit Scholarship Program. The election does not increase the amount of tax owed. Instead, it directs a portion of the tax already being paid toward scholarships that help Florida students access educational options that best meet their individual needs.

That means a transaction Floridians are already making can also become an opportunity to support student success.

When purchasing or registering an eligible vehicle, Floridians should ask the dealership finance manager or tax collector representative for the Motor Vehicle Sales Tax Credit Election form (Form DR-HS1), and designate Step Up For Students as your Scholarship Funding Organization of choice.  By making the election, vehicle buyers can help support educational opportunities for Florida students at no additional cost.

About Step Up For Students

Step Up For Students is the state-approved nonprofit Scholarship Funding Organization (SFO) that administers several scholarships for Florida schoolchildren, including the Florida Tax Credit Scholarship Program (FTC). This year, more than 500,000 students are utilizing the state’s Pre-K-12 scholarship programs to access learning options of their choice. These scholarship opportunities are made possible by people in our community who continually step up for Florida students. Through tax credit programs, individual donations, workplace giving, planned giving, and more, they enable our students to thrive from pre-school through high school and beyond.

For more information, visit www.StepUpForStudents.org.

Date Posted: September 1, 2026